Efficiency, Value addition and performance of US bank mergers

Analysis of Bank Mergers

The Federal Reserve Bank of Dallas currently has no way to tell what characteristics of a bank make it conducive to forming a successful merger. Further, they are unable to predict what types of mergers will be successful. It has been our goal to develop a model that will determine which types of mergers will be most successful, and what characteristics of a bank promote that success. The appro...

Bank mergers, competition and liquidity

We provide a model of the impact of bank mergers on loan competition, individual reserve management and aggregate liquidity risk. Banks hold reserves against liquidity shocks, refinance in the interbank market and compete in a differentiated loan market. A merger creates an internal money market that induces financial cost advantages and may increase reserve holdings. We assess the liquidity ri...

Horizontal Bank Mergers : Issues and

The impact of interwoven integration practices on supply chain value addition and firm performance

Drawing on the supply chain (SC) management literature, this article conceptualizes and empirically tests a framework that shows how both external and internal integration practices are significant and positively associated with SC value addition and firm performance. The framework also tests the impact of value addition as a reinforcing factor on firm performance. The outcome of this investiga...

Efficiency Gains and Mergers

In the theoretical literature, strong arguments have been provided in support of the efficiency defense in antitrust merger policy. One of the most often cited results is due to Williamson (1968) that shows how relatively small reduction in cost could offset the deadweight loss of a large price increase. Furthermore, Salant et al. (1983) demonstrate that (not for monopoly) mergers are unprofita...